Cryptocurrency
3 Reasons Bitcoin Has Rallied Over 60% in Just Two Months
3 Reasons Bitcoin Has Rallied Over 60% in Just Two Months: CoinDesk reports, “Bitcoin (BTC) has chalked up a stellar price rally in the past two months, reaching 33-month highs close to $16,000. The uptrend began in early September after buyers bought a dip below $10,000, and gathered pace in the second half of October. […]
3 Reasons Bitcoin Has Rallied Over 60% in Just Two Months:
CoinDesk reports, “Bitcoin (BTC) has chalked up a stellar price rally in the past two months, reaching 33-month highs close to $16,000.
The uptrend began in early September after buyers bought a dip below $10,000, and gathered pace in the second half of October.
Last week, prices reached a high of $15,971, a level last seen in January 2018. That’s a 63% price gain in eight weeks, according to CoinDesk’s Bitcoin Price Index.
Over 2018 and 2019, bitcoin often languished below $10,000, struggling to recover from a crash that followed the late 2017 surge to record highs near $20,000.
So, what’s behind the rapid gains in recent weeks? Here are three of the primary factors driving the bull market:
1. Increased institutional participation
‘Over the past eight weeks, we have seen various notable public companies and hedge funds enter the cryptocurrency market with sizable deployment of capital,’ Matthew Dibb, co-founder, and COO of Singapore-based Stack Funds said.
On Sept. 15, listed business intelligence firm MicroStrategy (NASDAQ: MSTR) announced the purchase of $250 million worth of bitcoins, and three weeks later payments company Square (NYSE: SQ) also disclosed its investment in the bitcoin market.
In October, leverage in the derivatives market was also skewed bullish, with institutions holding record long positions in bitcoin futures listed on the Chicago Mercantile Exchange…”